Riley Exploration Permian Reports Decrease in Revenue and Net Income for Q2 2025

Riley Exploration Permian, Inc. reported a decrease in financial performance for the second quarter of 2025, with total revenues of $85.4 million, down from $105.4 million in the same period of 2024. The decline was primarily attributed to lower oil sales, which fell to $85.9 million from $106.4 million year-over-year, reflecting a decrease in average realized prices. The company’s net income for the quarter was $30.5 million, compared to $33.5 million in the prior year, resulting in diluted earnings per share of $1.44, down from $1.59.

In terms of operational metrics, Riley Exploration reported an increase in daily oil production, averaging 15,187 barrels per day, up from 14,747 barrels per day in the previous year. However, the average realized price for oil dropped to $62.17 per barrel from $79.25, influenced by fluctuations in market conditions. The company also experienced a rise in lease operating expenses, which increased to $18.9 million from $16.5 million, largely due to higher production volumes.

Strategically, the company completed the acquisition of Silverback Exploration II, LLC on July 1, 2025, for $142 million, which adds approximately 47,000 net acres in Eddy County, New Mexico, enhancing its operational footprint. This acquisition was funded through cash on hand and borrowings from its credit facility. Additionally, Riley Exploration has been actively investing in midstream infrastructure, with significant capital expenditures aimed at enhancing its operational capabilities.

Riley Exploration's balance sheet showed total assets of $1.03 billion as of June 30, 2025, an increase from $993.5 million at the end of 2024. The company’s long-term debt stood at $255.2 million, with a current portion of $20 million due within the next year. The company maintained a working capital deficit of $37.8 million, improved from a deficit of $54.6 million at the end of 2024, aided by increased cash flow from operations.

Looking ahead, Riley Exploration anticipates continued volatility in commodity prices, which may impact future revenues and cash flows. The company remains focused on optimizing its asset base and pursuing growth opportunities while managing its capital expenditures and maintaining a strong balance sheet. The outlook for the remainder of 2025 will depend on market conditions, production levels, and the successful integration of recent acquisitions.